Business

German steelmaker posts huge loss

German steel-maker Thyssen Krupp has reported large losses for the year to the end of November.

Its net losses were 1.8bn euros ($2.4bn; £1.5bn) compared with a net profit of 927m euros in the same period last year.

The losses were caused by a 2.9bn euro write-down in the firm's US and stainless steel divisions.

Although the firm said it would pay a dividend despite the losses, its shares fell 2% in Frankfurt on the news.

The firm had previously expected its earnings before interest and tax (EBIT) to be 2bn euros.

"In light of the market developments over the summer months, the EBIT projection of 2 billion euros for the completed fiscal year 2010/11 should now only be wishful thinking," said German private bank Bankhaus Lampe.

"The current environment is not easy. The two impairment charges show that we are doing the things that need to be done - firmly and openly," said chairman Heinrich Hiesinger.

Thyssen Krupp has sought to diversify away from its core steel business by investing in its technology divisions.

"The technologies businesses of our group together account for around 75% of earnings - proof that we are already far more than steel," said Dr Hiesinger.

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